UPDATE 1-Russia backed IMF Ukraine loan but thinks Kiev might slip

(Adds quotes and context)

MOSCOW May 13 (Reuters) - Russia supported an International
Monetary Fund package for Ukraine last week but sees risks of
Kiev failing to meet the criteria, Deputy Finance Minister
Sergei Storchak said on Tuesday.

The IMF signed off on a $17 billion bailout for Ukraine last
week, with tough conditions including steep gas tariff hikes, a
floating exchange rate and reducing the budget deficit by about
2 percent of GDP each year from 2014-2016.

"The Russian Federation shared the positive evaluation of
the stand-by (loan) for the Republic of Ukraine. Formally this
means that the chances of Ukraine not returning the credit is
seen as low," Storchak told journalists at a briefing.

But he added that "the success of the programme very
strongly depends on several risks which Ukraine, judging by
everything, doesn't control yet".

The political situation in Ukraine remains fraught, with
continuing violence in eastern Ukraine where pro-Russian
separatists refuse to recognise the authority of the new
government in Kiev.

Meanwhile, Ukraine has accused Russia of using gas as a
political weapon, as Russia demands prepayment of $1.66 billion
for June gas deliveries.

Storchak said the primary risk seen by the IMF was a
deterioration in trade and economic relations between Russia and
Ukraine. "I emphasise: not in the area of gas," Storchak said.

"At the moment the tendency is developing in such a way that
signs of restoring normal trade and economic relations between
Russia and Ukraine are on the whole absent rather than present,"
he added.
(Reporting by Lidia Kelly, writing by Jason Bush; editing by
Tom Heneghan)